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2016 (8) TMI 1465 - AT - Income TaxRejection of registration of trust u/s 12A - HELD THAT:- Application of income of the trust has to be seen at the time of assessment and it is premature to examine the said issue at the time of grant of registration u/s 12A of the Act. The case of the assessee is supported by a decision of the Tribunal Life Shines Educational and Charitable Trust Vs ACIT [2015 (10) TMI 1478 - ITAT CHENNAI] in which it is held that the issue of application of income or the activities carried on were to be considered at an appropriate proceedings i.e. the assessment proceedings and not at the time of granting registration u/s 12A. In view of the ratio laid down in the decisions cited (supra), we find that the order of ld.CIT(A) is wrong and cannot be sustained as registration has been denied for no valid reasons. We ,therefore following the ratio laid down by the above said decisions, set aside the order of ld.Director (Exemption) with a direct to grant registration to the assessee u/s 12A of the Act.
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